Has the real estate market fully recovered?
ReAdeR question: Before the banks caused the 2008 meltdown, I purchased my home for $475,000. Homes directly around me have recently sold for anywhere between $215,000$360,000. Prices are finally rebounding here. Can I expect to make any money by putting my home for sale or should I wait to die in this house before I make a profit?
Monty’s Answer: Many areas have recovered entirely from the meltdown our federal government created years before 2008. We all don’t live in Seattle, San Francisco, or Las Vegas, but around the country, even the slowest markets to recover are progressing. Many pundits expect the market’s appreciation rate to cool because of rising mortgage rates.
update knowledge
The local and regional recovery rates vary on supply and demand driven by local or regional economies. For example, in my home state, a huge international company is building a massive manufacturing plant, and homes in that area are expected to increase in value as new workers will need housing. There are many sources to find real estate news. You can search online to find regional and local value trends.
seek local opinions
Consider contacting several local agents and ask for a competitive market analysis (CMA). You will get three different opinions of value from them, and your job will be to decide which one makes the most sense based on the research they present, and the depth of the study.
For example, many real estate agents either do not know how to calculate adjustments between the subject property and the comparable sales or they do not want to invest the time necessary to go through the process.
There is a high likelihood that you can sell long before you expire. When you mention you have the best home in the local community, that may be a factor that impacts the sale price. Buyers avoiding the house because of lesser neighboring values may reduce the size of your market. Like you, not all buyers will view it in that fashion.
Most real estate agents will encourage you to keep reducing the price if time wears on because they believe a home that sits on the market for extended periods is overpriced. While there are overpriced homes, in many instances, it takes time to find the buyer that can overlook the value differential.